Exe

cutive Summary
Chevron Corporation is one of the world's leading integrated energy companies with
subsidiaries that conduct business across the globe. The company's success is driven by the
ingenuity and commitment of approximately 62,000 employees who operate across the
energy spectrum. However, currently it has active operation more than 180 countries around
the globe where it is it is engaged in every aspect of the oil, gas, and geothermal energy
industries, including exploration and production; refining, marketing and transport; chemicals
manufacturing and sales; and power generation. Chevron is one of the world's six "SuperMajor" oil companies as of 2013; it ranked eleventh in the Fortune Global 500 list of the
world's largest companies. Through conducting this research it has found that there are
several strategies which are followed by the Chevron Corporation in order to run its core
business in a proper way in the modern competitive market across the world. The company is
continuing it operation by keep in mind the slogan of "Finding newer, cleaner ways to power
the world and with a Vision of to be the global energy company most admired for its
people, partnership and performance. Accordingly the company has a strong Value Chain
for it Upstream and Downstream with a modern supportive activities and functions.
Moreover it is also found that according to the BCG Matrix currently the company in the Star
Position as they already have a huge market share as well as high market growth. On the
other hand the CPM analysis says that ConocoPhillips is the very strong competitors in the
world market where as PetroBangla is the strong local competitor in Bangladesh market as
they enjoyed strong supportive advantages from government.
Finally the QSPM analysis indicates that currently the Chevron Corporation should Focus
On
Business Expansion in South East Asia rather than Focusing on in East Africa.

Company Profile of Chevron Corporation

Chevron Corporation is one of the world's leading integrated energy companies with
subsidiaries that conduct business across the globe. The headquarter of Chevron Corporation
is at San Ramon, California and currently it has active operation more than 180 countries
around the globe where it is it is engaged in every aspect of the oil, gas,
and geothermal energy industries, including exploration and production; refining, marketing
and transport; chemicals manufacturing and sales; and power generation. Chevron is one of
the world's six "Super-Major" oil companies as of 2013; it ranked eleventh in the Fortune
Global 500 list of the world's largest companies. Chevron is a leader both the upstream and
downstream aspects of the industry, thus controlling each step along the way. Chevron's
downstream operations manufacture and sell products such as fuels, lubricants, additives and
petrochemicals. The company's most significant areas of operations are the west coast of
North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia and South
Africa. Though Chevron is known for its broad span of gas stations around the world, but is
also involved other refined products, lubricants, and oil by-products (chevron.com)
Chevrons
main competitors include ExxonMobil ConocoPhillips, BP, and Royal Dutch Shell. These
companies are some of the largest and most powerful corporations in the world. Chevron's
alternative energy operations include geothermal, solar, wind, biofuel, fuel cells,
and hydrogen.
Chevron is the single largest producer of natural gas in Bangladesh; it is supplying around 50
percent of the country's natural gas consumption. It has increased production ten-fold in the
last decade to meet the countrys ever increasing demand for natural gas. It is also the
countrys largest foreign investor, with investments to date exceeding $1.2 billion and
providing employment to about 3,000 Bangladeshis. In the fiscal year 2009-2010 Chevron
has
been recognized as the highest corporate tax payer in Bangladesh. However, Chevron
Bangladesh is engaged several important projects in Bangladesh. Produce the natural gas is
the largest project of Chevron Bangladesh where all the natural gas and condensate Chevron
produces in Bangladesh is sold to PetroBangla, the national oil company. Chevron is also
working on exploration projects to harness the countrys home-grown resources for its future
energy security.
History
The company marked its 125th anniversary in 2004, tracing its roots to the discovery of
an oilfield in Pico Canyon (now the Pico Canyon Oilfield) north of Los Angeles. This find
led to the formation, in 1879, of the Pacific Coast Oil Company, the oldest predecessor of
Chevron Corporation. In 1900, Standard Oil purchased Pacific Coast Oil Company, and six
years later merged it was merged with Standard Oils West Coast marketing operations to
form Standard Oil Company (California). Amid the antitrust breakup of John D. Rockefeller's
Standard Oil company in 1911, it became Standard Oil of California, or SoCal, an
autonomous entity with its own oil fields, pipelines, tankers, refineries, and markets. In 1926
it purchased Pacific Oil Company, previously owned by Southern Pacific Railway, and
extended its pipelines and refineries from California to Texas.
Standard Oil of California, or SoCal, was one of the "Seven Sisters" that dominated the world
oil industry during the early twentieth century.
In 1933, Saudi Arabia granted SoCal a concession to find oil, which occurred in 1938. In the
early 1950s, SoCal discovered the world's largest oil field (Ghawar) in Saudi Arabia. SoCal's

subsidiary, California-Arabian Standard Oil Company, evolved over the years, becoming the
Arabian American Oil Company (ARAMCO) in 1944. In 1973, the Saudi government began
buying into ARAMCO. By 1980, the company was entirely owned by the Saudis and in 1988,
the name was changed to Saudi Arabian Oil Company (Saudi Aramco).
The Texas Fuel Company, which started out in three rooms of a corrugated iron building in
Beaumont, Texas, in 1901, became known as The Texas Company and eventually Texaco.
After SoCal geologists discovered oil reserves in Bahrain and Saudi Arabia in the early
1930s, Texaco and SoCal formed a joint marketing enterprise in 1936, the Caltex Group of
Companies. In 1939, the California company began operations in Louisiana and later offshore
in the Gulf of Mexico. Caltex began Canadian production in 1941, and later formed
subsidiaries and affiliates inLibya, Nigeria, Spain, Indonesia, and other parts of the world. In
1961, Caltex purchased Standard Oil Company (Kentucky).
The purchase of Gulf Oil by Standard Oil of California in 1984 was the largest merger in
history at that time. Because of its size, SoCal divested many of Gulf's operating subsidiaries
and sold some Gulf stations and a refinery in the eastern United States to satisfy U.S. antitrust
requirements. As part of the merger, SoCal changed its name to Chevron Corporation.[2]
In June 1998, Dynegy, Inc. (NYSE: DYN) was created by the merger of Chevron's former
natural gas and natural gas liquids businesses with Dynegy's predecessor, NGC Corp.
(formerly NYSE: NGL). NGC had been an integrated natural gas services company since
1994. In a merger completed February 1, 2000, Illinova Corp. (formerly NYSE: ILN)
became a wholly-owned subsidiary of Dynegy Inc., in which Chevron also took a 28 percent
stake.
In 2001, Chevron Corporation acquired Texaco to form ChevronTexaco. On May 9, 2005,
ChevronTexaco announced it would drop the Texaco moniker and return to the Chevron
name. Texaco remains as a brand name under the Chevron Corporation. On August 19, 2005,
Chevron acquired the Unocal Corporation. Unocal's large South East Asian geothermal
operations made Chevron the world's largest producer of geothermal energy.
Headquarters

One view of the sprawling Chevron headquarters complex

Chevron was headquartered in San Francisco for nearly a century before it relocated its
headquarters across the bay to [[San Ramon, California. Its original headquarters were at 225
Bush St., built in 1912. Chevron's headquarters buildings at 555 and 575 Market Street, San
Francisco, built in the mid-1960s, were sold in December 1999. Chevron headquarters is now
at 6001 Bollinger Canyon Road, San Ramon, CA.

Trademark
Chevron is the owner of the Standard Oil trademark in a 16-state area of the western and
southeastern United States. To maintain ownership of the mark, the company owns and
operates one Standard-branded Chevron station in each state of its area. Chevron also is
currently the owner of the trademark rights to Texaco brand gasoline. Texaco fuels are now
supplied by Chevron's network of wholesalers.
Chevron is the only brand of gas used by several automakers when testing vehicles,
including General Motorsand Toyota. (Ford also uses Chevron for testing despite a strategic
alliance with BP.) In 2007, Chevron ranked fourth in brand loyalty for gasoline in America,
while Texaco brand tied with Sunoco for second place.
Chevrons Slogan
A slogan is a short, memorable catch phrase, tagline or motto used to to identify a product or
company in advertisements. The advertising slogan, or business slogan most associated with
Chevron, is: "Finding newer, cleaner ways to power the world."
Vision Statement of Chevron:
At the heart of The Chevron Way is our vision to be the global energy company most
admired for its people, partnership and performance.
Mission Statement of Chevron:
"Our Company's foundation is built on our Values, which distinguish us and guide our
actions. We conduct our business in a socially responsible and ethical manner. We respect the
law, support universal human rights, protect the environment, and benefit the communities
where we work."

Organ gram of Chevron

Oil
Chevron is the largest private producer of oil and gas in Kazakhstan and Thailand, and the
top crude producer in Indonesia. In Australia, it is the largest leaseholder of undeveloped
natural gas resources, and is also a top leaseholder in the Gulf of Mexico. From 2001 to 2007,
Chevron increased its oil-equivalent resource base by about 1 billion barrels per year through
its exploration programs. Chevron has invested more than US$1 billion in each of 40
projects, and over US$200 million in more than 35 projects worldwide.
Natural gas
Natural gas now provides 23 percent of all energy consumed in the world. Chevrons natural
gas resources include significant holdings in Africa, Australia, Southeast Asia, the Caspian
region, Latin America and North America. Chevron produces approximately 5 billion cubic
feet of natural gas per day and expects to substantially increase this volume over the next
decade. Regions with natural gas surpluses are often located at great distances from the areas
where it is in greatest demand. Chevron uses the latest technologies to develop natural gas
products, from conventional pipeline gas to liquefied natural gas (LNG) to gas-to-liquids
(GTL). Cooled into a liquid, natural gas can be shipped safely in specialized tankers to
gasification plants where it is heated to its gaseous state so it can be delivered to customers
through pipeline systems. Chevron is also developing gas-to-liquids (GTL) technology, which
can be used to create synthetic diesel fuel, lubricant base oils and naphtha from natural gas.

GTL diesel delivers higher performance and has a lower environmental impact than
traditional diesel fuels; it can be blended into conventional diesel to increasing the supply of
fuel that meets stringent air-quality rules.[7]

Alternative energy
The company also develops, and commercializes advanced energy technologies,
including fuel cells, photovoltaics, and advanced batteries, and is active in research and
development efforts to utilize hydrogen as a fuel for transport and power.
Biofuels
Chevron is investing US$300 million per year into alternative fuel sources, and has created a
biofuels business unit.[8]
In 2007, Chevron Corporation and US-DOE's National Renewable Energy Laboratory
(NREL) announced that they had entered into a collaborative research and development
agreement to produce biofuels from algae. Under the agreement, Chevron and NREL
scientists will collaborate to identify and develop algae strains that can be economically
harvested and processed into transportation fuels such as jet fuel.[9]
Chevron Shipping Company
Chevron Shipping Company is a wholly owned subsidiary company which handles the
maritime transport operation for Chevron Corporation. The fleet comprises crude oil and
product tankers as well as three gas tankers operated by Chevron Shipping for other
companies. The fleet is divided into two sections, U.S. and International. The U.S. fleet
transports oil products from Chevron refineries to customers in the U.S. The ships are
manned by U.S. citizens and are flagged in the U.S. The International fleet vessels are
flagged in the Bahamas and have officers and crews from many different nations. The largest
ships are 308,000 tonne VLCCs. The job of the international fleet is to transport crude oil
from the oilfields to the refineries. The international fleet mans two LPG tankers and one
LNG tanker.
Chevron originally gave its ships names beginning with "Chevron," such as the Chevron
Washington and Chevron South America, or named them after former or serving Directors of
the company such as Samuel Ginn and William E. Crain. A ship named after Condoleezza
Rice was renamed Altair Voyager, in 2001, after a controversy over whether it was
appropriate to name an oil tanker after President George W. Bushs national security advisor.
[10]
After the corporate merger with Texaco later in 2001, the entire fleet was renamed;
international ships after celestial bodies or constellations (Orion Voyager, Altair Voyager and
so pn) and U.S. ships after states (Washington Voyager, Colorado Voyager and so on).

Leadership Accountability
Leadership is the single largest factor for success in OE. Leaders establish the vision and set
objectives that challenge the organization to achieve world-class results. They direct the
Management System Process, setting priorities and monitoring progress on plans that focus
on the highest-impact items. Leaders visibly demonstrate their commitment through personal
engagement with the workforce and by showing concern for the health and safety of every
individual. They demonstrate the same commitment to protecting the environment and
process safety risk mitigation.

Management System Process

The Management System Process (MSP) is a systematic approach used to drive progress
toward world-class performance. It is linked to the business planning process and begins with
defining a vision of success and setting objectives. Gaps between current performance and
these objectives are uncovered during the assessment phase. Plans are developed to close the
gaps, the plan is implemented and a review of plan implementation and performance is
completed.
The Management System Process contains five steps:
Vision and Objectives
An OE vision is established, or validated, and specific objectives and measures for success
are identified and cascaded to the workforce. Organizations should:
Develop an OE vision, world-class objectives, metrics and targets. These are based on the
corporate objectives, benchmarking data and other critical business drivers.
Set objectives for OEMS implementation and the development of processes to meet OEMS
requirements.
Cascade OE vision, objectives, metrics and targets to all levels of the organization.
Consider appropriate adjustments to vision and objectives identified during the Review step.
Adopt and cascade the Tenets of Operation to the workforce.
Assessment
A comprehensive OEMS Self Assessment is completed annually to identify gaps in OE
processes, standards and performance against established objectives. The leadership team is
engaged in assessments and participates in prioritization of assessed gaps. The highestpriority OE processes and standards are assessed annually, and a full assessment of all
processes and standards is required at least every three years. Organizations should:

 Assess risks and gaps against objectives in:

o Leadership Accountability
o Management System Process
o OE Expectations and Processes
o Facility risks and capability to achieve world-class performance
o Workforce OE culture
Prioritize assessed gaps based on risk and opportunity.
Identify future risks that could prevent world-class performance.
Planning
A three-year plan is developed to manage the prioritized gaps. Plans are incorporated directly
into business plans, and accountabilities are assigned. Organizations should:
Develop OE metrics, targets and action plans with completion dates and milestones, and
incorporate these into business plans.
Identify and allocate resources to successfully complete the OE action plans.
Communicate metrics, targets and action plans.
Assign accountabilities, and develop necessary performance agreements.
Implementation
Planned actions are implemented along with other business plan activities. OE networks are
engaged to share lessons learned and to seek out best practices and processes that can be
adopted to achieve plan objectives. Organizations should:
Execute plans along with other business plan activities.
Maintain contacts with OE networks to share lessons learned and to seek out best practices
and processes that can be adopted to achieve plan objectives.
Monitor plan progress and OE performance at least monthly, and adjust plans as necessary.
Identify and manage new, unplanned actions not included in current business plans.
Review
An annual review of all OEMS activity is conducted to evaluate progress on performance and
to identify necessary adjustments to plans to achieve world-class results. Organizations
should:

 Review progress against OE plans to determine whether they are effective and that
performance is on track to achieve world-class levels.
Evaluate the organizations Management System Process activity for improvement.
Identify possible plan adjustments based on emerging issues and changing business
conditions.
Consider results of external reviews. External reviews include peer assists as well as
corporate audits conducted every three to five years.

Tenets of Operation
To achieve and sustain our objectives, we must develop a culture where everyone believes all
incidents and operating disruptions are preventable and that zero incidents is possible.
Tenets are a code of conduct used by the workforce as a tool to guide daily decisions. Leaders
play an important role in setting expectations and reinforcing behaviors consistent with the
tenets.
The Tenets of Operation are based on two key principles:
1. Do it safely or not at all.
2. There is always time to do it right.
Each organization will deploy the Tenets of Operation to provide a foundation for
establishing a culture of operational excellence at Chevron.
Always:
1. Operate within design and environmental limits.
2. Operate in a safe and controlled condition.
3. Ensure safety devices are in place and functioning.
4. Follow safe work practices and procedures.
5. Meet or exceed customers requirements.
6. Maintain integrity of dedicated systems.
7. Comply with all applicable rules and regulations.
8. Address abnormal conditions.

9. Follow written procedures for high-risk or unusual situations.

10. Involve the right people in decisions that affect procedures and equipment.
Technology

Chevron has three technology companies that support the companys businesses. The work
that these companies do is integrated across Chevronthe groundbreaking technologies we
are developing are deployed throughout the company. Chevron continues advancing
capabilities in subsurface imaging and modeling to support exploration, field development
and reservoir management. The company integrates rapid advances in commercial seismic
data acquisition techniques with proprietary imaging capability, well information, reservoir
models and regional knowledge to provide a competitive advantage in geologically complex
basins worldwide. Chevrons Gulf of Mexico business unit successfully developed and
executed a rigless hydraulic intervention approach that reduces costs and production shut-in
time relative to the historical rig-based process. The first application of this was on five wells
in the Tahiti Field where we saw a 52 percent increase in production and an 85 percent
decrease in cost. Where applicable, this technology will be used across Gulf of Mexico
deepwater assets.
In the community
Wherever Chevron operates, the company strives to build lasting relationships to create
prosperity now and for decades to come. We contribute to the economic and social well-being
of the communities where we operate by creating jobs, supporting local businesses and
training the workforce of the future.
Investing in education
Over the past three years, Chevron has invested more than $170 million in education
partnerships and programs in the United States. We work with education organizations,
government officials, nonprofit organizations and community leaders to create and strengthen
education opportunities and offer career and technical training for students and workers. We
invest in partnerships at every stagefrom early education through employmentall with a
special focus on cultivating programs in science, technology, engineering and math (STEM).
Chevron supports a broad range of programs across the United States:

Chevron partners with the Fab Foundation to bring Fab Labsfabrication laboratories
to areas where Chevron operates. The Fab Foundation provides access to tools and

technology in order to educate, innovate and invent. The first Chevron-sponsored Fab
Lab opened in 2014 at California State University, Bakersfield. In 2015, Fab Labs
opened in Richmond, California; Pittsburgh and Grindstone, Pennsylvania; and
Washington, D.C. The Fab Labs are open both to students and to the community.

Chevron supports Project SEED as part of our commitment to preparing our students
for careers in engineering, research and technology. The program offers high school
students in Richmond the chance to learn about science by working in a laboratory
setting, which includes the labs at our Chevron Richmond Technology Center campus.

Improving career and technical training

Chevron supports career and technical training programs that provide a foundation for longterm economic development.In partnership with Casa de Amigos, Chevron supports the
Take2 job skills program in the Permian Basin. The program helps equip low-income women
and men with the skills to obtain high-paying jobs. From 2011 through 2015, Take2

participants experienced gross annual income increases totaling $4.1 million.Among a

number of Gulf Coast initiatives, Chevron partnered with GNO, Inc., and Delgado
Community College to use the annual Technical Skills Expo to introduce more than 800 high
school students to industry opportunities, career pathways and training available at their
schools.Chevron sponsors the Contra Costa County Office of Educations Regional
Occupational Program (ROP).
Record of achievement
Chevrons story dates back to an 1876 oil discovery at Pico Canyon in the Santa Susana
Mountains, north of Los Angeles. The find led to the 1879 formation of Chevrons earliest
predecessor, the Pacific Coast Oil Co.Another part of our history begins with the 1901
founding of The Texas Fuel Co. (later Texaco) and its historic oil discovery two years later at
Sour Lake, Texas. These companies and other members of the Chevron family have been
instrumental in transforming the oil business into todays global energy industry.Throughout
the 20th century, Chevron and Texaco experienced dynamic growth in the United States and
internationally. In 1984, Standard Oil Co. of California, Chevrons immediate predecessor,
acquired Gulf Corporation in a $13.3 billion merger. At the time, it was the largest acquisition

in corporate history. That same year, Texaco purchased Getty Oil and gained 1.9 billion
barrels in proved reserves of crude oil and 2.8 trillion cubic feet of natural gas reserves.
Health and Safety
Chevron continues to demonstrate its commitment to advancing health initiatives, protecting
the environment and promoting safety. We use our Operational Excellence Management
System to systematically drive continuous improvement throughout our organization. We are
instituting a standard Contractor Health and Safety Management process across the company
to help ensure that workers can do their jobs without risk to themselves, others or the
environment and to help contract workers be aware of the safe work practices that apply to
the work they are doing. For example, our San Joaquin Valley upstream business unit works
with key contractors to raise their awareness about safeguards to prevent and mitigate
incidents. Chevron was selected as the Best of the Best among the 2014 IHS SPECTRUM
Excellence Award winners based on our innovative use of information systems to achieve
environmental, health, safety and sustainability business goals. Chevron ranked highest of all
integrated oil and gas competitors in North America in the 2014 CDP S&P 500 Climate
Change Report, with an overall score of 95 points. The score reflects Chevrons transparency
in disclosing our greenhouse gas emissions and our climate policies.

Environmental record
From 1965 to 1993, Texaco participated in a consortium to develop the Lago Agrio oil field
in Ecuador. It has been accused of causing extensive environmental damage by these
operations, and faces legal claims from both private plaintiffs and the government of Ecuador.
The case has been widely publicized by environmental activists. Chevron claims that it is
being unfairly targeted as a deep pocket defendant, when the actual responsibility lies with
the government and its national oil company.
Chevrons activities in Richmond, California have been the subject of ongoing controversy. A
project there houses over 11 million pounds of toxic materials and has been responsible for
over 304 accidents. In 1998, Chevrons Richmond refineries were forced to pay $540,000 in
penalties for illegally bypassing wastewater treatments and failing to notify the public about
toxic releases. Overall, Chevron is listed as potentially responsible for ninety-five Superfund
siteslocations for which the U.S. Environmental Protection Agency (EPA) has earmarked
funds for cleanup. In October 2003, the state of New Hampshire sued Chevron and other oil
companies for using MTBE, a gasoline additive that the attorney general claimed polluted
much of the state's water supply.

Chevrons African operations have also been criticized as environmentally unsound. In

2002, Angola became the first African nation ever to fine a major multinational corporation
operating in its own waters when it demanded two million dollars in compensation for oil
spills allegedly caused by Chevrons poor maintenance.

Niger Delta incident

On May 28, 1998, local activists staged a demonstration to demand compensation for the use
of their oil-rich land and took several individuals hostage on a private oil platform in the
Niger Delta, Nigeria. Nigerian police and soldiers were allegedly flown in with Chevron
helicopters. Soldiers shot at the activists and subsequently two activists (Jola Ogungbeje and
Aroleka Irowaninu) died from their wounds. Chevron described the situation as "a violent
occupation of private property by aggressors seeking to extort cash payments from the
company."
U.S. District Judge Susan Illston, allowing a lawsuit brought by victims and victims' families
against Chevron to proceed, said that there may be evidence that Chevron has hired,
supervised, and/or provided transportation to Nigerian military forces known for their
"general history of committing abuses." In March 2008, the plaintiffs' lawyers, without
explanation, "quietly moved to withdraw half of their claims" against Chevron.
The Nigerian government reportedly depends upon oil production for 80 percent of its
revenue. Amnesty International and other human rights organizations have condemned the
Nigerian government for its reported harsh treatment of environmentalists, and for failing to
provide sanitation, a clean water supply and adequate schools for the inhabitants of the
regions where the oil is produced.
Accusations of irresponsibility in Cabinda
Although revenue from oil supports the MPLA government in Angola, Chevron has been
accused of not fulfilling its community responsibilities in the province of Cabinda, Angola.
Chevron's employees live and work in isolated, self-sufficient compounds such as the
Malongo terminal, supplying their own services and importing groceries and other
commodities duty free from overseas, so that there is little economic impact on local markets
and infrastructure. In a survey, Cabindans expressed their concern that the multi-billion dollar
oil industry has not improved their daily lives.
Environmental

policy

and

development

Defenders of Chevrons environmental record point to recent changes in the corporation,

particularly its pledge, as of 2004, to combat global warming.
Chevron has taken steps to reduce emissions of greenhouse gases and pursue cleaner forms of
energy.[23][24] In a 2006 study, Ceres, a coalition of institutional investors and
environmentalists based in Boston, ranked Chevron highest among U.S. oil companies for
investing in alternative energy sources and setting targets for reducing its own
emissions. Chevron is the world's largest producer of geothermal energy, providing enough
power for over 7 million homes in Indonesia and the Philippines.

Competitor of Chevron Corporation

1. British Petroleum (BP)

2. RD Shell (RDS)
3. ExxonMobil (XOM)
4. ConocoPhillips (COP)
5. PetroBangla
6. Santos
7. India ONGC
8. Bangladesh Petroleum Exploration Company (BAPEX)
PESTEL- analysis of Chevron
Political
Government cooperation in fuel
exploration.
Enjoying tax benefits in developing
countries.
Political relations are built and
maintained centrally.
Social/Socio-Cultural
Contribution in health awareness
programs.
Funding education program in
African countries.
High standard of safety maintained
in production plant.
Ecological/Environmental
Concentrate on eco friendly energy

Economical
Consistent fundamental and
economical growth.
Significant pricing stability.
Vulnerable inflation in most of
the Asian and African
countries.
Technological
Introducing new technologies.
Focus on research and
development.
Production and operations are
automated.
Legal/Regulatory
Government regulations in

sector.
Creating awareness of going green.
Diversifying operation in renewable
energy.

respect with energy

exploration.
Struggling to comply with
environmental laws and
regulation.
Employment policies are made
based on local community.

Value chain of Chevron Corporation

At Chevron, our businesses work in concern to provide the energy that drives human
progress. Explore Chevrons companies to learn how we use our global resources,
determination and ingenuity to meet todays complex energy challenges. Chevron
Corporation continues to be a leader in all aspects of the industry. Chevron is adding to its
value by continuing to expand its assets all over the world, and creating a more efficient
process upstream and downstream.

The Value Chain Diagram of Chevron Corporation

Chevron has major operations in the worlds most important oil and gas regions. We are
leaders in working in extremely difficult environments such as ultra deep water. Our refining
operations are strategically located to serve the fastest growing markets .We provide raw
materials and finished products to the right locations at the right time. Through an extensive
network, we move and store petroleum and petrochemical products. Our fleet crosses the
oceans to safely bring energy to our customers around the world.

Market Analysis:

Chevrons market segmentation depends on the natural recourses in the different countries.
Chevron, like all major integrated oil companies, is divided into two broad segments:
Upstream operations exploration and production of oil and natural gas and downstream
operations refining, production and distribution of oil and petroleum-based products. The
company maintains interests in over 80 companies across a diverse range of business interests
within these segments, including retail gasoline and natural gas distribution under several
brand names, oil and natural gas exploration and production, liquefied natural gas
transportation and storage, power generation, petroleum products production, and mining,
among many others. It boasts a market capitalization of about $213 billion and revenues
topping $200 billion in fiscal 2011 making it one of the top twenty largest companies in the
world by either measure.

Chevron Activities in Bangladesh

Highlights of operations
Chevron is the largest producer of natural gas in Bangladesh, supplying approximately
50 percent of the countrys natural gas consumption. We are the largest foreign investor in
Bangladesh.Through our subsidiaries, we produce natural gas and condensate from three
fields in northeastern Bangladesh. To meet the countrys increasing demand for natural gas,
we have increased production tenfold in the last decade and have plans for further production
growth.Chevron Bangladesh has achieved a remarkable safety record while employing more
than 4,000 Bangladeshis. We work with communities across our operations, building longterm partnerships that foster social and economic development in the country.
Business portfolio
Exploration and Production
All the natural gas and condensate that Chevron produces in Bangladesh is sold to
Petrobangla, the national oil company. Through Chevron subsidiaries, the company operates
three fieldsBibiyana, Jalalabad and Moulavi Bazarunder production-sharing contracts
signed with Petrobangla. In 2015, net daily production averaged 720 million cubic feet of
natural gas and 3,000 barrels of condensate. Condensate is liquid hydrocarbon produced with
natural gas.
Putting innovation to work
Chevron operates the Bibiyana Field in Block 12. The field is one of the most significant
natural gas discoveries in Bangladesh, in both quality and size of the reserve.
In 2014, we announced the start of production at the Bibiyana Expansion Project. The project
includes two gas-processing trains, additional development wells and an enhanced liquids
recovery facility and has an incremental design capacity of 300 million cubic feet of natural
gas and 4,000 barrels of condensate per day. The liquid recovery facility started up in the first
quarter of 2015.
Work continued on the Bibiyana Compression Project through 2015. That project is expected
to provide incremental production to offset field decline. A final investment decision is
pending commercial negotiations.

In the community
Chevron Bangladesh invests in activities and programs that focus primarily on economic
development, education and health care, reaching nearly 37,000 people in Bangladesh.
Improving Livelihoods
Chevron started its livelihood improvement program in 2006 with 200 underprivileged
families in Bibiyana. To increase family income, the program provided seed funds, organized
villagers into self-help groups and offered skills training. Over the past decade, more than
3,700 Bangladeshis near our three fields have benefited through the creation of more than
2,400 new income-generating enterprises.
Partnering with local nongovernmental organizations (NGOs), Chevron has supported
communities by providing 1,000 energy-efficient cooking stoves and 280 solar panels. In
Bibiyana, Chevron started a pilot project that promoted organic farming and improved
agricultural practices. As a result, villagers saw increased production of cash crops, fruits,
vegetables, pond fish and poultry and an increase in cattle farming.
Workforce development has also been a focus. A program that ended in 2015 provided skillsbased training and job placement opportunities to more than 650 unemployed youths and
womenmost of these were former workers released at the end of the Bibiyana Expansion
Project.
In 2014, Chevron Bangladesh announced the Bangladesh Partnership Initiative (BPI), a
$10 million, five-year program to promote sustainable income growth among micro and
small entrepreneurs and create employment opportunities by improving Chevrons existing
Village Development Organization structure near the three gas fields in the Sylhet, Habiganj
and Moulvibazar districts.
In September 2015, under the banner of the BPI, Chevron announced a partnership with
BRAC, the worlds largest NGO, to conduct an18-month enterprise development pilot that is
expected to create 1,500 new businesses.
Also under the BPI, we signed a memorandum of understanding with the Asian Development
Bank in November 2015 to provide 1,000 youths with vocational training and employment in
light engineering, construction and information technology.

Creating Educational Opportunities

Chevron strives to improve the quality of and access to education for students in the areas
where we operate. Our scholarship drive for high-achieving underprivileged students was
launched in 2001, and the number of recipients has increased to more than 1,700 today. The
scholarship program includes a teacher training component. We also support programs to
improve childrens learning experiences in school.
In 2015, in partnership with Save the Children, we announced a three-year extension of the
Non-Formal Primary Education program. After completing a school-readiness section, 1,800
out-of-school children in 60 one-room schools completed the first grade. In addition, 1,200
primary school students have benefited from after-school activities and remedial education.
The project is set to include training for 120 teachers and parenting awareness services for
1,800 parents.
Improving public health
From 2005 to 2008, Chevron established three community clinics near our Bibiyana and
Moulavi Bazar fields. Those clinics have 86 satellite locations that also provide care. All are
part of the nationwide Smiling Sun Franchise Program, which is sponsored by the U.S.
Agency for International Development and operated by Pathfinder International, U.S. More
than 100,000 health care servicesincluding lab tests, vaccinations, counseling sessions and
moreare provided every year.
Being a good neighbor
Chevron employees are active members of the community. During the 20142015 fiscal year,
nearly 800 employees donated blood during Chevrons annual drive. The Bangladesh Red
Crescent Society recognized Chevron as the largest corporate blood donor for 2013 and 2014.
Between 2007 and 2015, Chevron helped plant more than 133,000 saplings near its three
fields.
Chevron has joined forces with BRAC to launch a road-safety awareness program for the
communities near the Bibiyana gas field and the city of Sylhet. To date, more than 800

drivers have received defensive driving training. Safety awareness training has been provided
to 4,500 schoolchildren and more than 100 teachers at 25 schools in the Bibiyana area.

Record of achievement
Chevron contributes to the economy of Bangladesh in several ways. As the largest foreign
investor, we provide employment for about 4,000 Bangladeshis.
Chevron has developed three natural gas fields in Bangladesh. The Jalalabad Field was
discovered in 1989 and went into production in 1999. The Moulavi Bazar Field was
discovered in 1999 and came on line in 2005. The largest producing field in Bangladesh, the
Bibiyana Field, was discovered in 1998 and came on line in 2007.During the Bibiyana
expansion project in 2014, we provided employment for nearly 1,700 local workers at all
three fields1,100 at the Bibiyana Field alone.
Health, Environment and Safety
Chevron works in partnership with the government of Bangladesh and with Petrobangla, the
national oil company, to develop the countrys energy resources in a safe, environmentally
responsible manner. To protect the environment and maintain safe operations, Chevron uses
the latest technologies and strict inspection
Conclusion
Energy sector has become one of the rising and most demanding business sectors once human
civilization experienced technological innovation. Since then there are plenty of organizations
diversifying their business in energy sector and Chevron Corporation is one of the pioneer.
Chevron is worlds sixth super major oil corporation currently operating in more than 180
countries around the world. Chevron has diversified their business in many different
segments such as-oil, gas, geothermal, exploration, refining and production. Diversification
helped the organization to become more competitive along with strategic planning and
execution. Chevron is highly competitive with other giant organizations not only in
international market but also in Bangladesh market such as-BP, RD SHELL,
CONOCOPHILLIPS, EXXONMOBIL and Petro Bangla in Bangladesh. Based on different
strategic management model and tools it is found that company has a strong Value Chain for
it Upstream and Downstream with a modern supportive activities and functions. Moreover it
is also found that according to the BCG Matrix currently the company in the Star Position as
they already have a huge market share as well as high market growth. Moreover Chevron is
experiencing hard environmental regulations due to the nature of the business which is
negatively affecting their revenue to some extent. Finally the QSPM analysis indicates that
currently the Chevron Corporation should Focus on Business Expansion in South East Asia
rather than Focusing on Focusing on in East Africa.